Apply Envelope Indicator

SMA/WMA/EMA Envelopes plot a band composed of two moving averages, one which is shifting upwards, the other shifting downwards, to help define a stock's upper and lower boundaries. The bands of an envelope are calculated as follows:

Upper Band = MA(CLOSE, N)*[1+K/100]

Lower Band = MA(CLOSE, N)*[1-K/100]

Where:

MA — Simple (or Weighted or Exponential) Moving Average;

N — averaging period;

K/100 — the value of shifting from the average (measured in basis points).

To apply an Envelope indicator

1. Create a realtime interactive chart.

2. On the Charts menu select Add Study.

3. From the list of study indicators, select Envelope.

Copyrights and Trademarks